Sanctuary Cove CDD Frequently Asked Questions July 15, 2024
The Homeowner’s within Sanctuary Cove have compiled the following list of questions to more fully understand the powers/responsibilities/obligations/assets of the CDD and the coordination between the CDD/HOA/Developer/City of Palmetto/Public Utilities.
What is the CDD, City of Palmetto, Utility Companies, Developer and HOA responsible for within Sanctuary Cove. The CDD is ultimately responsible for maintaining, repairing and replacing the infrastructure it owns. So, as set forth in the July 28, 2021 Engineer’s Report, the CDD is responsible some portions of the stormwater management system and the public right-of-way between from US Highway 301 to the Guard House. The utilities ﬁnanced by the CDD have already been transferred to the local general-purpose government for its ownership, maintenance and replacement. The CDD should not speak to the City’s responsibilities other than the say the CDD is located entirely within the City of Palmetto and the City provides typical municipal services. The CDD should not speak to the responsibilities of the Utility Companies, the Developer and the HOA within Sanctuary Cove unless the Board directs staﬀ to research all of the various responsibilities of organizations that are not aﬃliated with the CDD, which would be a lengthy and expensive project.
Provide an up-to-date exhibit of the CDD Boundary. Electronic copy available by emailing mullinsl@pfm.com
Does the CDD have an ongoing obligation to maintain certain infrastructure? Yes.
If so, what infrastructure does it maintain? The CDD is ultimately responsible for maintaining all stormwater management facilities described in the Engineer’s Report dated July 28, 2021. See copy of Engineer’s Report, attached. However, the HOA is currently maintaining the community stormwater management system. In addition, the CDD is ultimately responsible for maintaining all improvements including roadway, sidewalk, landscape and hardscape, including but not limited to trees, shrubs and ground plantings; all ﬁxtures, including but not limited to irrigation equipment, piping, controls and sprinklers; and all associated materials located within the certain span of the Right of Way from US Highway 301 to the Guard House. However, the HOA is currently maintaining this portion of right-of-way.
Has the CDD entered into an agreement with the HOA to maintain certain infrastructure? Yes.
Provide copy of the agreement. Electronic copy available by emailing mullinsl@pfm.com
Does the CDD have additional maintenance responsibilities?
If so, what additional maintenance obligations? See above. The right-of-way from US Highway 301 to the Guard House is currently handled by the HOA under the attached agreement.
Has the CDD entered into an agreement with the HOA to maintain anything else? No.
Provide copy of the Agreement. N/A.
Does the CDD anticipate a yearly preventative maintenance schedule that ties to the O&M budget?
What can we expect in 2024 and beyond? The CDD should budget beginning FY 2025-2026 for reserves for road resurfacing from US Highway 301 to the Guard House when the pavement requires it. The Board may also want to start to budget some funds for the limited stormwater infrastructure owned by the CDD, and landscape and irrigation replacement from US Highway 301 to the Guard House, as landscape and irrigation infrastructure does not last forever. If the HOA ever terminates the existing maintenance agreement, which it has the right to do, the CDD would then have to budget for the maintenance of the right-of-way from US Highway 301 to the Guard House.
What year did the CDD assessment commence on property owners tax bill? O&M Assessments began with the Fiscal Year starting October 1, 2022, which would have appeared for the ﬁrst time on the November 1, 2022 county tax bill.
What is the total CDD bond value? $3,140,000 (the par value of the Series 2021 Bonds when issued)

What were the proceeds of the bond used for? Proceeds of the bonds were used for a portion of the
infrastructure as described in the CDD Engineer’s Report which included the following:

CATEGORY	TOTAL	
Stormwater Facilities	$435,319	
Public Roadways and Ancillary Infrastructure	$560,083	
Potable Water, Wastewater and Reclaimed Facilities	$3,991,181	
Total	$4,986,583	
Please provide a copy of the requisition for developer reimbursement. Electronic copy available
by emailing mullinsl@pfm.com
What properties within the CDD boundary contribute to the Debt Assessment? All current, platted residential lots (254 total lots).
Are the commercial properties subject to Debt Assessment? No.
If not, please provide an explanation as to why they have access to the CDD roads but did not contribute to the costs? In lieu of a second series of bonds secured by assessments on the lands other than the 254 platted lots, the developer contributed the remaining infrastructure in the CDD Capital Improvement Plan. This contribution in lieu of assessments was considered by the CDD Board in August of 2024.
Are the commercial properties subject to the CDD O&M? Yes.
Are the Residential/MF properties subject to Debt Assessment? No.
If not, please provide an explanation as to why? It is the same explanation as for the commercial properties, above.
Are the Residential/MF properties subject to the CDD O&M? Yes
What interest rate(s)% is the bond obligated to? 3.69%
Is it a ﬁxed rate? Yes.
How many years is the CDD assessment in place until the bond payback is satisﬁed? 30 years.
What is the maximum debt assessment for each lot type? See below, which does not take into account any
payments made since the bonds were issued.

PRODUCT TYPE	ERU (PER UNIT)	MAXIMUM PRINCIPAL (PER UNIT)	MAXIMUM ANNUAL INSTALLMENT*
(PER UNIT)	
Single Family (50’ lot)	1.00	$10,229	$655.50	
Single Family (80’ lot)	1.60	$16,347	$1,047.60	
Single Family (85’ lot)	2.07	$21,176	$1,357.04	
Single Family (river lot 100’+)	2.45	$25,093	$1,608.06	
Townhomes/Flats/Condominiums
(MF tower units)	0.20	$2,046	$131.10	
Clubhouse-Recreation (sqft)	0.0005	$5.11	$0.33	
*inclusive of collection costs (e.g. early payment discounts, tax collector and
County Property Appraiser)	
Provide the stratiﬁcation methodology? Electronic copy available by emailing mullinsl@pfm.com

LAND USE	DEBT/U NIT	NET ANNUAL DEBT SERVICE	ADMINISTRATIVE EXPENSES	TOTAL ANNUAL DEBT SERVICE	
Single Family (50' - lot)	$8,000	$445	$34	$479	

Single Family (80' - lot)	$10,000	$556	$42	$598	
Single Family (85' - lot)	$15,000	$835	$63	$897	
Single Family (river - lot 100'+)	$25,000	$1,391	$105	$1,496	

For each of the diﬀerent lot sizes; what is the estimated maximum assessment dollars a property will be charged before there is no longer this tax (amortization schedule)? Unless paid oﬀ in full at a date prior to maturity, properties subject to assessment will receive an annual assessment as prescribed in the table above through the maturity of the bonds May 1, 2052.
How does a resident pay oﬀ the assessment in full? Debt service can be paid in full by contacting estoppels@pfm.com .
Provide examples of potential cost savings of early pay oﬀ. The CDD should not provide business or tax advice to residents. Residents should consult their own ﬁnancial planning and tax professionals. With that said, if the debt assessment is paid oﬀ early, the lot owner will pay less interest compared to not paying the debt assessment oﬀ early.
How  do  we  determine  the  outstanding  balance  of  the  debt  assessment?  Please  contact
estoppels@pfm.com.
Provide an explanation of each line item in the yearly O&M budget? Upon request.
Will the O&M budget exist after the bond has been fully paid oﬀ? Yes.
Can the CDD be terminated by the Board and it’s members? Technically, no. However, the City of Palmetto has the legal authority to terminate the CDD pursuant to a petition ﬁled by the CDD Board pursuant to section 190.046 (2)(b) or (c), (7) or (10) Florida Statutes.
If so, please explain how that would occur? See above and section 190.046, Florida Statutes attached hereto.
If a resident pays oﬀ their CDD assessment, are they obligated to pay yearly O&M budget assessments? Yes.